This chapter is a simple, rigorous, practically-oriented exposition of computable general equilibrium (CGE) modeling. The general algebraic framework of a CGE model is developed from microeconomic fundamentals, and employed to illustrate (i) how a model may be calibrated using the economic data in a social accounting matrix, (ii) how the resulting system of numerical equations may be solved for...

This article analyzes the nonenvironmental welfare costs of an environmental tax reform using a numerical intertemporal general equilibrium model for the Norwegian economy. By exploiting existing tax wedges in the labor market and between consumption and saving, the total nonenvironmental welfare effect of the tax reform is positive. The article also analyzes how imperfect price expectations fo...

We study second-degree price discrimination in markets where the product traded by the monopolist is access to other agents. We derive necessary and suffi cient conditions for the welfareand the profit-maximizing mechanisms to employ a single network or a menu of non-exclusive networks. We characterize the optimal matching schedules under a wide range of preferences, derive implications for pri...

The "aftermarkets" literature focuses on two important questions: (1) do durable goods manufacturers that control their aftermarkets have an incentive to charge service prices that exceed costs?; (2) how significant (in a welfare sense) is this distortion? Unlike previous work, this paper addresses the latter question by explicitly modeling firm behavior under various market structure condition...

Ukraine became independent in 1991 and formally abandoned central planning. But the development of market methods of input supply and product distribution was impeded by continuing price distortions and the survival of various methods of administrative commodity allocation from the central planning period. This paper outlines the background environment of central planning in Ukraine, reviews th...

Permit markets lead polluting …rms to purchase abatement goods from an eco-industry, which is often concentrated. This paper studies the consequences of imperfect competition in an ecoindustry on the equilibrium choices of the competitive polluting …rms. It then characterizes the second best pollution cap. By comparing this situation to a competitive one, we show that Cournot competition on the...

We introduce an effective model for e(g) electrons to describe quasi-two-dimensional layered La(2-x)Sr(x)NiO(4) nickelates and study it using correlated wavefunctions on 8 × 8 and 6 × 6 clusters. The effective Hamiltonian includes the kinetic energy, on-site Coulomb interactions for e(g) electrons (intraorbital U and Hund's exchange J(H)) and the coupling between e(g) electrons and Jahn-Teller ...

Abstract We propose a novel housing market model to explore the effectiveness of rent control. Our reveals that expectation formation and learning behavior boundedly rational homebuyers, switching between extrapolative regressive rules subject their past forecasting accuracy, may create endogenous dynamics. show policymakers use control reduce level, although such policies have undesirable effe...